PENSION FUNDS DEVELOPMENT AND ECONOMIC GROWTH IN NIGERIA (2004-2016)

Abstract

The study examined the relationship between pension funds development and economic growth in Nigeria; for the period (2004-2016). Secondary data were used and collected from the Pencom Annual Statistics/Reports. Hypothesis was formulated and tested using Ordinary Least Square (OLS) estimation method. The findings revealed that total assets contributions from both private and public sector in Nigeria has a negative significant relationship with Gross Domestic Product in Nigeria. This means that for every unit change in total assets there is a corresponding negative change of (0.00216) on Gross Domestic Product in Nigeria. The p-value of (0.186745) indicated an insignificant relationship between total assets and Gross Domestic Product in Nigeria. This implies that total assets of pension fund are not fully utilized in the productive sector to stimulate growth and development in the Nigerian economy. The coefficient of determination indicates that about 37% of the variations in economic growth can be explained by changes in pension funds development variable (TA) in Nigeria. The study concluded that total assets of pension fund have not contributed positively to the growth of the Nigerian economy. The study recommended that ethics and moral standard should be built into the scheme.Training and retraining of staff and management of pension fund in Nigeria should be vigoriuosly pursued. Vibrant local and foreign seminars and workshops should be conducted regularly to sensitize both workers, staff, management and pensioneers. Pension funds institute should be established to carry out most of the enlightenment function to reduce cost of running training progrmmes. Prompt and regular payment of pensioneers should be adopted and practised. Ghost pensioneers should be identified and controlled. Portfolio investment of pension funds (total assets) should be encouraged.